M.P. BEER PRODUCTS LTD, MUMBAI v. DCIT CIR 3(2), MUMBAI

ITA 5943/MUM/2014 | 2004-2005
Pronouncement Date: 30-11-2017 | Result: Dismissed

Appeal Details

RSA Number 594319914 RSA 2014
Assessee PAN AABCM0354P
Bench Mumbai
Appeal Number ITA 5943/MUM/2014
Duration Of Justice 3 year(s) 2 month(s) 7 day(s)
Appellant M.P. BEER PRODUCTS LTD, MUMBAI
Respondent DCIT CIR 3(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 30-11-2017
Date Of Final Hearing 18-07-2017
Next Hearing Date 18-07-2017
First Hearing Date 18-07-2017
Assessment Year 2004-2005
Appeal Filed On 22-09-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI G.S.PANNU ACCOUNTANT MEMBER AND SHRI PAWAN SINGH JUDICIAL MEMBER ITA NO. 5943/MUM/2014 (ASSESSMENT YEAR 2004-05) M.P.BEER PRODUCTS LTD. 601 MAKER CHAMBER-V NARIMAN POINT MUMBAI -21 PAN: AABCM0354P ...... APPELLANT VS. THE DCIT CIR.3(2) MUMBAI 400 0051 .... RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SHRI SUMAN KUMAR DATE OF HEARING : 09/11/2017 DATE OF PRONOUNCEMENT : 30/11/2017 ORDER PER G.S.PANNU A.M: THE CAPTIONED APPEAL FILED BY THE ASSESSEE PERTA INING TO ASSESSMENT YEAR 2004-05 IS DIRECTED AGAINST AN ORDE R PASSED BY THE CIT(A) -4 MUMBAI DATED 04/08/2014 WHICH IN TURN ARISES OUT OF AN ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT) DATED 13/ 05/2009. 2. IN THIS APPEAL THE GRIEVANCE OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A) SUSTAINING THE LEVY OF PENALTY UNDER SECTION 271(1)(C) OF 2 ITA NO. 5943/MUM/2014 (ASSESSMENT YEAR 2004-05 THE ACT TO THE EXTENT OF RS.43 87 214/- AS AGAINST RS.65 80 000/- LEVIED BY THE ASSESSING OFFICER. 3. IT WAS NOTED AT THE TIME OF HEARING THAT THIS APPEAL WAS FIXED FOR HEARING FOR MORE THAN ONE OCCASION AND INSPITE OF ISSUANCE OF NOTICE OF HEARING BY RPAD NEITHER THE ASSESSEE NOR ANY OF HIS REPRESENTATIVE HAS APPEARED. UNDER THESE CIRCUMSTA NCES FOLLOWING RULE 24 OF THE INCOME TAX (APPELLATE TRIBUNAL) RULE S 1963 THE APPEAL OF THE ASSESSEE IS BEING DISPOSED OFF EX-PARTE AFTER HEARING THE RESPONDENT-REVENUE ON MERITS. 4. IN THE INSTANT CASE THE RELEVANT FACTS ARE THAT CONSEQUENT TO A SURVEY ACTION IN THE CASE OF BHARATIYA JEEVAN DHAR A EDUCATION & CHARITABLE TRUST NEW DELHI THE ASSESSMENT WAS REO PENED AND IN THE ENSUING ASSESSMENT FINALIZED UNDER SECTION 143(3) R .W.S. 147 OF THE ACT DATED 28/12/2007 THE ASSESSING OFFICER MADE AN ADD ITION OF RS.1 22 00 000/- WHICH REPRESENTED THE AMOUNT OF DEDUCTION CLAIMED UNDER SECTION 35AC OF THE ACT. THE DISALLOWANCE WAS MADE ON THE GROUND THAT THE SURVEY ACTION IN THE CASE BHARATIY A JEEVAN DHARA EDUCATION & CHARITABLE TRUST NEW DELHI REVEALED T HAT THE DONATION GIVEN BY THE ASSESSEE WAS RETURNED BACK IN CASH AND THEREFORE THE ASSESSEES CLAIM FOR DEDUCTION UNDER SECTION 35AC W ITH REGARD TO THE DONATION MADE TO THE BHARATIYA JEEVAN DHARA EDUCAT ION & CHARITABLE TRUST NEW DELHI WAS HELD TO BE BOGUS. CONSEQUENTL Y THE ASSESSING OFFICER PASSED AN ORDER UNDER SECTION 271(1)(C) OF THE ACT WHEREBY HE HELD THE ASSESSEE GUILTY OF CONCEALMENT OF INCOME AS WELL AS FURNISHING OF INACCURATE PARTICULARS OF INCOME QUA THE AFORE SAID DISALLOWANCE. THE ASSESSING OFFICER LEVIED A PENALTY OF RS.65 80 800/- WHICH WAS 3 ITA NO. 5943/MUM/2014 (ASSESSMENT YEAR 2004-05 EQUIVALENT TO THE 150% OF THE TAX SOUGHT TO BE EVAD ED ON THE AFORESAID INCOME. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A) WHO HAS ALSO SUSTAINED THE ACTION OF THE ASSESSING OFFICER; SO HOWEVER HE SCALED DOWN THE LEVEL OF PE NALTY BY REDUCING IT TO THE MINIMUM PRESCRIBED I.E. 100% OF THE TAX SOU GHT TO BE EVADED. IN THIS WAY THE PENALTY HAS BEEN REDUCED TO RS.43 87 214/- AS AGAINST RS.65 80 800/- LEVIED BY THE ASSESSING OFFICER. NO T BEING SATISFIED WITH THE ORDER OF CIT(A) ASSESSEE IS IN FURTHER APPEAL BEFORE US. 5. AT THE TIME OF HEARING THE LD. DEPARTMENTAL REP RESENTATIVE HAS TAKEN US THROUGH THE ORDERS OF THE AUTHORITIES BELO W AND SOUGHT TO DEMONSTRATE THAT THE LOWER AUTHORITIES HAVE MADE NO MISTAKE IN LEVYING PENALTY UNDER SECTION 271(1)(C) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THE LD. DEPARTMENTAL RE PRESENTATIVE POINTED OUT THAT THE FURNISHING OF INACCURATE PARTI CULARS OF INCOME QUA THE CLAIM OF DEDUCTION UNDER SECTION 35AC OF THE A CT STOOD CORROBORATED ON ACCOUNT OF THE SURVEY ACTION IN TH E CASE OF DONEE-TRUST AND THEREFORE THE LEVY OF PENALTY WAS QUITE JUSTI FIED. 6. HAVING HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSING THE ORDERS OF THE AUTHORITIES BELOW WE FIND THAT A JUSTIFIABLE CASE FOR LEVY OF PENALTY UNDER SECTION 271(1)(C) OF THE ACT HAS BEEN MADE OUT BY THE INCOME-TAX AUTHORITIES. THE RELEVANT DISCUSSIO N IN THE ORDERS OF THE AUTHORITIES BELOW REVEAL THAT THE ENTIRE ADDITION I S BASED ON THE INFORMATION UNEARTHED IN THE COURSE OF SURVEY IN TH E CASE OF DONEE INSTITUTION NAMELY BHARATIYA JEEVAN DHARA EDUCATIO N & CHARITABLE TRUST NEW DELHI. BEFORE US THERE IS NO MATERIA L WHICH WOULD ENABLE US TO DISTRACT FROM THE CONCLUSIONS DRAWN BY THE LO WER AUTHORITIES 4 ITA NO. 5943/MUM/2014 (ASSESSMENT YEAR 2004-05 WHICH ARE BASED ON THE RELEVANT MATERIAL. THEREFORE IN VIEW OF THE AFORESAID WE HEREBY AFFIRM THE DECISION OF THE CIT (A) AND ACCORDINGLY THE ASSESSEE FAILS IN THIS APPEAL. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISS ED AS ABOVE. ORDER PRONOUNCED IN THE OPEN COURT ON 30/11/2017. SD/- SD/- (PAWAN SINGH) (G.S. PANNU) JUDICIAL MEMBER ACCOCUNTANT MEMBER MUMBAI DATED 30/11/2017 VM SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT MUMBAI